The fundamentals of Chicago’s industrial market remained steady in the first quarter of 2023, with the overall vacancy rate falling 40 basis points year over year to 4.7%, according to Savills. Despite this, an increasing number of sublease offerings have come onto the market in recent months, particularly within popular submarkets such as O’Hare. Available space was observed to remain on the market longer than usual and net absorption returned near historical averages after surging throughout 2021 and 2022. In response, landlords are offering increased concessions including tenant improvement allowances.
Deal volume remained healthy during Q1 with Target Corporation signing a 1.2-million-square-foot lease at Rock Creek Logistics Center in Joliet IL being one notable example; however construction levels appear to have peaked and development is expected slow down considerably over both short and medium term periods ahead..
Pictured: Rock Creek Logistics Center
